Creditors for collapsed civil engineering contractor Highland Quality Construction (HQC) look unlikely to be paid what are they owed from the firm's total debt of £16m.
At a meeting of creditors in Inverness, receivers from KPMG for the stricken contractors said it was doubtful the creditors would be paid in full, the Press and Journal reported.
Payment problems on the M80 Haggs to Stepps motorway project in central Scotland are thought to have led to cashflow difficulties for HQC.
The receivers' report said: “The group also faced significant difficulties due to the level of monies being withheld by the main contractor in respect of the M80 contract.
“Monies were received at a much lower level than had been anticipated and this caused further strain on HQC’s cashflow. Ultimately, these cashflow problems became insurmountable.”
Former employees of the contractor, who are preferred creditors, will be paid what they are owed, a sum of over £143,000.
HQC’s assets at its Inverness and Cumbernauld sites were sold for £8,000.